BAJAJ-AUTO vs HEROMOTOCO
Side-by-side comparison of Bajaj Auto Ltd. and Hero MotoCorp Ltd.. Descriptive only — not investment advice.
Bajaj Auto Ltd.
Auto
Quality Score: 74/100
Hero MotoCorp Ltd.
Auto
Quality Score: 73/100
At a glance
| Metric | BAJAJ-AUTO | HEROMOTOCO |
|---|---|---|
| Quality Score | 74/100 | 73/100 |
| P/E (trailing) | 26.9 | 16.8 |
| Forward P/E | 22.2 | 15.1 |
| ROE | +28.1% | +28.0% |
| Profit margin | +16.5% | +12.1% |
| Debt-to-equity | 56.29 | 3.57 |
| Dividend yield | +1.45% | +3.77% |
| 1Y price return | +25.6% | +15.0% |
| From 52w high | -3.8% | -23.1% |
| Analyst rating1 = Strong Buy, 5 = Strong Sell | 2.35 | 2.25 |
Highlighted value = better on the metric (lower for P/E, D/E, drawdown, analyst rating; higher elsewhere). Descriptive only.
Snapshots
Bajaj Auto trades at ₹10,342, up 25.58% over the past year, sitting above both its 50-DMA (₹9,820) and 200-DMA (₹9,244) with RSI at 54.51. The company reported Q4 PAT growth of 34% and May 2026 domestic sales growth of 20% alongside a 34% jump in exports, while announcing a ₹150/share dividend and a share buyback. Trailing PE stands at 26.9x against a forward PE of 22.2x, with 5-year earnings growth of 103.1% and ROE of 28.05%.
Hero MotoCorp (HEROMOTOCO) is Indias largest two-wheeler manufacturer, trading at ₹4,819.9 with a trailing PE of 16.8 and ROE of 28.0% — the highest quality score (69) among 6 tracked Auto sector peers. The stock has declined 16.0% over the past 3 months and is 23.1% off its 52-week high, sitting 10.6% below its 200-DMA with no identified technical support levels; RSI stands at 36.8.
Pros
- ✓ROE of 28.05% ranks 1st among the 6-stock Auto peer group, ahead of Eicher Motors (23.77%), M&M (18.75%), Bosch (19.35%), and MARUTI (14.43%).
- ✓5-year revenue growth of 48.8% and 5-year earnings growth of 103.1% indicate sustained compounding of both top- and bottom-line over the medium term.
- ✓Forward PE of 22.2x represents a 17.5% compression versus the trailing PE of 26.9x, reflecting analyst expectations of continued near-term earnings expansion.
- ✓Profit margin of 16.51% and a consistency score of 83 (out of 100) in the persistence module point to stable earnings quality across the available historical window.
- ✓Quality score of 69 ranks 1st of 6 Auto peers (BAJAJ-AUTO: 55, EICHERMOT: 66, MARUTI: 31), reflecting the highest composite quality in the tracked peer set.
- ✓ROE of 28.03% is the second-highest among peers (BAJAJ-AUTO: 28.05%), with 4 of available years recording ROE above 15% and FCF positive — a consistency score of 77.
- ✓Trailing PE of 16.8 and forward PE of 15.1 are the lowest among the 5 peers with available PE data (BAJAJ-AUTO: 27.0, EICHERMOT: 35.3, M&M: 19.5, MARUTI: 27.7), indicating a valuation discount relative to comparable names.
- ✓Dividend yield of 3.77% and 5-year revenue growth of 30.2% with 5-year earnings growth of 25.7% indicate both capital returns to shareholders and a multi-year growth track.
Cons
- ✗Debt-to-equity of 56.29 is anomalously elevated for a two-wheeler manufacturer and likely consolidates captive-finance or NBFC subsidiary debt, making standalone leverage assessment impossible from this figure alone.
- ✗FCF-positive years number only 3 out of an unspecified total in the persistence data, leaving the full cash-generation track record unverifiable.
- ✗Quality score of 55 is mid-pack within the peer set (2nd of 6), indicating the stock does not lead on the composite quality measure despite its ROE ranking.
- ✗The stock is within 3.8% of its 52-week high, with resistance identified at ₹10,635 and ₹10,750, offering a narrow gap between current price and the nearest supply zone.
- ✗Price trades 10.6% below the 200-DMA (₹5,390.1) and 6.1% below the 50-DMA (₹5,130.5), with a 3-month decline of 16.0% and a 52-week drawdown of 23.1%; no technical support levels are identified in the data.
- ✗Debt-to-equity of 3.57 shows a rising trend, which in a capital-intensive EV transition environment represents an elevated leverage position relative to the companys historical profile.
- ✗RSI of 36.8 reflects sustained selling pressure over recent months, with three identified resistance levels (₹5,458.5, ₹5,484.5, ₹5,733.3) and no identified support below current price.
- ✗FCF-positive years and ROE-above-15% years are both recorded at 4, but the total number of years in the underlying dataset is not disclosed, making the consistency score of 77 difficult to independently verify.
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